Hyperliquid Proposes HIP-4 to Integrate Prediction Markets on Layer-1

Key Facts

As decentralized finance (DeFi) continues to evolve, platforms are increasingly seeking to unify speculative and hedging tools within a single ecosystem. Hyperliquid has proposed the 'HIP-4' model, which aims to bring binary outcome contracts directly onto its native Layer-1 central limit order book. According to reports, this new model will enable cross-margin sharing between prediction markets and the platform's flagship perpetual futures, significantly improving capital efficiency for active traders.

This strategic move comes as the prediction market sector experiences a surge in activity, with competitors like Polymarket reaching trading volumes exceeding $460 million in recent months per market data. By integrating these markets into its existing infrastructure, Hyperliquid seeks to challenge the current duopoly. The ability to use a single margin pool for both event-based betting and perpetual trading offers a distinct advantage over isolated platforms that require separate collateral for different asset classes.